If you’ve been waiting to right-size from a private property to an HDB flat, the wait is officially over.
On July 28, National Development Minister Chee Hong Tat announced the immediate removal of the 15-month wait-out period for private property owners looking to buy a non-subsidised HDB resale flat. The cooling measure, originally introduced in September 2022 to rein in a red-hot housing market, has officially done its job.
Here is a breakdown of why the government made this move now, and how it is expected to shake up the housing market in the coming months.
Why the sudden change? Put simply, the HDB resale market has finally caught its breath. Back in 2022, HDB resale prices were surging at a massive 10.4%. Fast forward to today, and the landscape looks very different. Price growth slowed to just 2.9% in 2025, and in the first half of 2026, prices actually dipped for two consecutive quarters—falling 0.1% in Q1 and 0.3% in Q2.
Because the market has entered a much more balanced phase, the government decided the restriction was no longer necessary.
What happens to the HDB resale market now? If you're wondering whether this will trigger another crazy price surge, analysts generally say no. However, we are likely going to see a shift in where the money is going:
- A rush for larger flats: Cash-rich private homeowners who are downgrading usually want more space and value. Experts predict a concentrated bump in demand for five-room and executive flats. This targeted demand could lead to an uptick in million-dollar transactions for premium flats in choice locations.
- The rise of a "two-speed" market: Because downgraders are expected to flock toward bigger, well-located flats, the market might split. Larger and newer flats will likely outperform, while demand and price growth for smaller or less ideally located flats could soften.
- Prices will largely stay stable: A massive safety valve is already built into the market right now. A wave of newer HDB flats are currently reaching their Minimum Occupation Period (MOP) and entering the resale market. We’re looking at roughly 13,500 flats hitting MOP this year alone, and that number will climb to over 21,300 by 2028. This heavy supply of fresh flats should easily absorb the new wave of buyers, keeping overall price growth measured.
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The ripple effect on rentals and private homes The policy change doesn't just impact HDBs. Over in the private residential market, buyers might soon see more options. As private homeowners sell their properties to move into public housing, a fresh supply of private units will be unlocked, which should help further stabilize private home prices.
The rental market will also feel the shift. For the past few years, downgraders were forced to rent interim housing while waiting out their 15 months. With that hurdle gone, rental demand for large HDB resale flats and smaller condos is expected to cool down in the coming months.
The bottom line This policy reversal is largely being viewed by experts as a targeted, pragmatic adjustment rather than a broad relaxation of cooling measures. It restores much-needed flexibility for households looking to right-size, especially retirees or those facing financial changes, without throwing the broader housing market off balance.
